Market presence strategy
Market presence strategies are developed by companies in the course of an internationalization project and show the company's possibilities and capabilities to exist in foreign markets. The internationalization project can affect an entire company, part of a company, a product group or a single product. The timing, the selection of the new markets, the classification of the selected markets on an attractiveness scale and the intensity of the market entry are specified. At the same time, a distribution of the equilibria (risk, profit, know-how, etc.) is taken into account in order to choose a safe path towards globalization.
In all cases, the company's registered office remains in its home country. The presented possible division of the market presence into 4 categories is based on the book International Management (see below).
Basic market presence strategy
The basic market presence strategy indicates the intensity with which a market entry takes place. The number of market launches in a certain period of time is decisive here. Decisive for the decision of the strategy is mostly the branch of the product to be introduced and the conditions in the competition of this branch.
Concentration strategy
In the form of a sequential market entry into a few, strictly selected foreign markets. The resources are concentrated on a limited number of foreign markets. A waterfall strategy is often chosen as a form of market entry .
Diversification strategy
Entry into many national markets within a short time and distribution of resources across several countries, mostly in the form of a sprinkler strategy .
Geographic market presence strategy
In the geographical MPS, the company decides on the number of country markets in addition to its home country it would like to be active in. In addition, the relationship to the home market is shown in the form of concentric or island-shaped presence strategies. The concentric presence strategy is characterized by the fact that foreign markets are selected that are directly around the home market. With the island-like presence strategy, on the other hand, the foreign markets are spatially separated from the home market as well as from each other.
Single market strategy
Area of activity only in one country besides the home country
Multi-retail strategy
Activity of a company on the home market as well as on several foreign markets in different regions. Individual regions are not completely covered here.
Regional market strategy
Activity of a company in the home market as well as in all countries of a certain region.
Multi-regional market strategy
Activity of a company in the home market as well as in all countries in several regions.
World market strategy
- Worldwide base of operations
- Many foreign bases
- High proportion of foreign production
- International raising of capital
- Worldwide recruiting
- Headquarters as a holding company
Attractiveness-oriented market presence strategy
Attractiveness-oriented market presence strategies assess a country market according to its current and future attractiveness. With the help of the strategy, entrepreneurial entry can be made at different levels of entry strength. The presence strategy can thus be set up on a company-specific basis and enables the formation of clusters or groups of country markets. At the beginning of their international activity, companies can use a simple table to create an overview of which markets require special attention and which markets should be avoided. This varies from industry to industry and even between individual companies.
Focus markets
Focus markets are very important for individual company success. A strong presentation of the company in both the procurement and sales markets is common. As a rule, there are only a few focus markets for a company.
Presence markets
These markets are still very important for the company, but are not absolutely necessary for it to exist. Business relationships are cultivated and continuously expanded within the scope of the given possibilities.
Casual markets
Sporadic business activity for short-term use of opportunities.
Abstinence markets
No business activity is planned in these markets, as the markets are not considered to be successful or even threatening the company's success.
Compensation-oriented market presence strategy
Special attention is paid to the interaction of national markets. An analysis of the factors risk, profit, investment, resources, know-how and competition are decisive for the selection of the various markets.
See also
literature
- Michael Kutschker , Stefan Schmid : International Management, Oldenbourg Wissenschaftsverlag ( ISBN 3486580019 ), 2006